An adaptability-driven model and tool for analysis of service profitability

Profitability of adopting Software-as-a-Service (SaaS) solutions forexisting applications is currently analyzed mostly in informal way. Informalanalysis is unreliable because of the many conflicting factors that affect costs andbenefits of offering applications on the cloud. We propose a quantitativ...

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Bibliographic Details
Main Authors: OUH, Eng Lieh, STAN, Jarzabek
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2016
Subjects:
Online Access:https://ink.library.smu.edu.sg/sis_research/4007
https://ink.library.smu.edu.sg/context/sis_research/article/5009/viewcontent/an_adaptability.pdf
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Institution: Singapore Management University
Language: English
Description
Summary:Profitability of adopting Software-as-a-Service (SaaS) solutions forexisting applications is currently analyzed mostly in informal way. Informalanalysis is unreliable because of the many conflicting factors that affect costs andbenefits of offering applications on the cloud. We propose a quantitative economicmodel for evaluating profitability of migrating to SaaS that enables potentialservice providers to evaluate costs and benefits of various migration strategiesand choices of target service architectures. In previous work, we presented arudimentary conceptual SaaS economic model enumerating factors that have todo with service profitability, and defining qualitative relations among them. Aquantitative economic model presented in this paper extends the conceptualmodel with equations that quantify these relations, enabling more precisereasoning about profitability of various SaaS implementation strategies, helpingpotential service providers to select the most suitable strategy for their businesssituation.